TeliaSonera, the leading telecommunications group in the Nordic-Balticregion, has signed an agreement with France Telecom to acquire itsDanish subsidiary, Orange A/S, with 605,000 mobile customers in Denmark.Combined with Telia Mobile Denmark, a new powerful alternative will beavailable for Danish telecommunications customers.

· TeliaSonera will at closing pay in cash an amount correspondingto an enterprise value of EUR 600 million less the net debt of OrangeDenmark on the closing date.

· Closing will take place after approval by the EU Commission andthe Danish National IT and Telecom Agency and other necessary approvals.The Board of Directors of Orange S.A. has approved the execution andconsummation of the agreement. The strategic committee of the Board ofDirectors of France Telecom S.A. has unanimously recommended to theBoard of Directors of France Telecom S.A. to vote in favor of theapproval of the execution and consummation of the agreement. Thechairman of the Board of Directors of France Telecom S.A., Mr. ThierryBreton, is also the chairman of the strategic committee of the Board ofDirectors of France Telecom S.A. Approval can be attained within 25-105working days.

· The acquisition is expected to generate synergies with a totalpre-tax cash flow effect of SEK 490 million from 2006, of which SEK 20million is capex synergies1). The major part of the cost savings of SEK470 million is related to closing down one of the overlapping GSMnetworks. The remaining part will be derived from management of only onebrand and closing down of overlapping functions and premises. Beforeimplementation costs synergies are estimated to have a net present valueof SEK 4,100 million.

· Implementation costs are expected to amount to approximatelySEK 540 million and relate mainly to the costs for transferring trafficto the retained GSM network, initial marketing and subscriber migrationcosts (SIM cards etc) and a maximum payment of the guaranteed UMTSlicense costs of SEK 260 million. Capital expenditure related to theintegration is estimated to approximately SEK 250 million. TeliaSoneraexpects significant write-downs in relation to the transaction, mainlyrelated to closing down one of the networks.

· Following the acquisition, TeliaSonera will have approximately1.1 million mobile customers in Denmark, and will be the third largestDanish mobile operator.

"By combining Telia Mobile Denmark and Orange Denmark, we are creating atrue and powerful contender to the two dominating players in the Danishmarket. Combined we will have critical mass and operational scale,sufficient to become the first choice provider of mobile services inDenmark. This combination will benefit the Danish mobile customers,"comments Anders Igel, President and CEO of TeliaSonera and continues,"In particular, the increased size will improve our ability to meet thedemands of the business customer segments, but it will also enable us tocontinue improving our successful consumer service offer."

TeliaSonera currently operates mobile and fixed line communications aswell as cable TV business in Denmark. With the acquisition, TeliaSonerais executing its strategy to increase its mobile customer base inDenmark. Anders Igel continues: "The transaction confirms TeliaSonera'slong-term commitment to the Danish market and it strengthens our Nordicfootprint in a way that will increase our overall competitiveness in pan-Nordic offerings."

Integration

The plan is to begin integrating the mobile operations of TeliaSonera inDenmark and Orange A/S as soon as the necessary approvals for thetransaction are obtained. Until then, integration planning will be leadby a steering group, chaired by Kenneth Karlberg, President TeliaSoneraNorway, Denmark and the Baltic countries, and comprising JesperBrockner, Vice President, TeliaSonera Denmark, Richard Moat, CEO, OrangeA/S, and Kjell-Ove Blom, Senior Business Advisor, TeliaSonera, asintegration project leader.

Initially, no changes will be made in the existing customerrelationships. The existing products and services of both organizationswill continue to be delivered under separate existing brands until atleast spring 2005. No significant organizational overlaps are expectedpertaining to entities with direct customer contacts, such as customerservices and the 22 Orange shops.

Integration planning will include decisions on branding, customermigration, new service portfolio, premises, personnel, handling of theoverlapping GSM networks and UMTS licenses. Personnel overlaps areexpected mainly within management, administration, network operationsand product and services development. Confirmation of this is expectedto be made in the beginning of 2005.

Employees in Telia Stofa and Telia Networks will not be affecteddirectly by the integration.

Conference callAnalysts, investors and international media are also invited toparticipate in a conference call with Anders Igel, President and CEO ofTeliaSonera, later today.Time: 12.00 hours - CET (Stockholm time) 11.00 hours - UK (London time)To ensure that you are connected to the conference call, please dial ina few minutes before the start of the conference call.Dial-in number:+44 (0)20 7162 0191Participants should quote: TeliaSoneraReplay number until July 15: +44 (0)20 8288 4459, access code: 830202

Forward-Looking StatementsStatements made in the press release relating to future status orcircumstances, including future performance and other trend projectionsare forward-looking statements. By their nature, forward-lookingstatements involve risk and uncertainty because they relate to eventsand depend on circumstances that will occur in the future. There can beno assurance that actual results will not differ materially from thoseexpressed or implied by these forward-looking statements due to manyfactors, many of which are outside the control of TeliaSonera._______________________________1 Exchange rate for convenience only of 1DKK = 1.2301 SEK has been usedfor transaction related currency translations in this press release

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